MUMBAI: Driven by rising indebtedness, which hit an all-time high of 5.7 per cent in FY23, the net financial savings of the households, which has been the mainstay of savings in the economy, has been on a southward-ho from FY14, when it stood at 7.2 per cent of GDP has hit a record low of 5.2 percent in FY23, shows the RBI annual report for FY24.
On the other hand financial liabilities have been on a northward-ho during the past one decade, rising from a low 3.1 per cent of GDP in FY14 to a record high of 5.7 percent in FY23, the highest ever in The net savings peaked in the pandemic hit FY21, at 11.6 per cent of GDP.
Similarly, gross financial savings of the households also remained stagnant or declining in the past decade, from 10.4 per cent in FY14 to 10.9 per cent in FY13 after hitting a rock bottom of 9.9 per cent in FY15 and peaking at 15.2 percent in FY21.
The liabilities of the households hit a low of 2.7 percent in FY16, from 3 percent in the previous fiscal and since then has been moving upwards peaking at 5.7 percent in FY23. The numbers remained stagnant at 3 percent in FY15 and FY17 and but moved up to 4.3 percent in FY18, declined marginally to 3.8 percent in the next fiscal but rose again to 3.7 percent in FY20 then resumed its northward jaunt again to hit 3.8 percent in FY22.